Demystifying OMP: An In-Depth Guide to Occupational Maternity Pay

As a working woman and mother myself, I know firsthand how challenging it can be to balance career and family when a new baby arrives. The drop in income when moving from your salary to statutory maternity pay can be daunting. But did you know many employers offer something called occupational maternity pay (OMP) to support new parents through this transition?

In this detailed guide, I‘ll walk you through everything you need to know about OMP – what it is, how it works, who offers it, and how to negotiate getting this valuable benefit.

A Primer: Understanding OMP Basics

OMP provides extra pay from employers during maternity leave, adding to the legally required minimum statutory pay. It aims to help new moms financially while allowing them time to recover and bond with baby.

Unlike statutory maternity pay which is mandatory, OMP is an optional, enhanced benefit employers can choose to provide, so policies vary between companies. Some elements are consistent though:

• Part of maternity pay package – OMP tops up statutory pay, it doesn‘t replace it
• Lasts up to 39 weeks – Matches the maximum maternity leave period
• Varies by employer – Each company decides their own OMP policy

Think of OMP as an additional bonus or perk employers can offer, over and above the statutory minimum requirements. Now let‘s look at how this works in practice…

How OMP Works: Pay Structures and Duration

Most OMP packages are structured in periods, offering different pay levels for set portions of the leave:

• Weeks 7-18 – Commonly topped up to full normal salary
• Weeks 1-6 – Often 90% of normal weekly earnings
• Weeks 19-39 – Statutory pay only (£151.97/week currently)

So a typical OMP policy provides full income for the first 6 months, then statutory rate only for the last 3 months.

But some employers offer even more generous OMP deals like full pay for the entire maternity leave duration. A 2022 survey found over 1 in 3 companies now provide 6-12 months full pay.

Average OMP policy:

Leave Period	Pay Level
First 6 weeks	90% of normal salary
Next 3 months	100% of normal salary
Last 3 months	Statutory pay only

More progressive OMP packages are also increasingly popular – for example providing 4-6 months full pay, followed by 2 months 80% pay, then statutory rate.

The key point is OMP allows income to be maintained for some or all of maternity leave at the employer‘s discretion.

Why Do Companies Offer OMP?

For employers, providing OMP over and above the legal minimums offers several benefits:

• Attracts top talent – In competitive fields, OMP is a differentiator prospective parents look for
• Improves retention – Making leave more affordable disincentivizes switching jobs
• Enhances company culture – Supports diversity, inclusion and work-life balance
• Boosts employer brand – Positions company as progressive, family-friendly

With women accounting for nearly half the UK workforce, OMP policies help attract and retain this vital talent pool during the child-bearing years.

And with over 80% of mothers reporting discrimination in the workplace, OMP demonstrates commitment to supporting working parents.

Rising Popularity: OMP Uptake Over Time

Occupational maternity pay has become significantly more common over the last decade:

• 2011 – 27% of employers offered OMP
• 2022 – 63% of employers offer OMP

Data sources: Working Families, XpertHR

This aligns with a wider trend of more generous maternity packages as employers recognise the benefits for corporate talent strategies.

Weighing the Pros and Cons of Offering OMP

Naturally there are both advantages and drawbacks for employers when considering OMP:

Pros

• Attracts and retains talented women
• Supports diversity and family-friendly culture
• Boosts employer brand and reputation

Cons

• Increased HR administration
• Higher maternity leave costs
• Potential staff resentment from non-parents

However research shows the benefits tend to outweigh the costs – employers with OMP report:

• 71% increased ability to attract female candidates
• 58% improved retention of returners after maternity leave
• 50% increased engagement from expectant mothers

And OMP‘s popularity with staff is clear – one survey found offering 6 months full pay would make:

• 82% of women more loyal to their employer
• 80% of women more likely to return to work after maternity leave
• 74% of men more likely to recommend their employer

So while requiring initial investment, the data shows OMP pays dividends longer term through recruitment, retention and company culture.

OMP Eligibility and Statutory Rights

It‘s important to understand OMP provides additional pay on top of statutory maternity entitlements. All pregnant employees have certain legal rights regardless of what enhanced OMP an employer may offer.

Statutory Maternity Pay eligibility:

• Earned above Lower Earnings Limit (£120/week currently)

• 12+ months continuous service by due date

This provides:

• 6 weeks at 90% pay
• 33 weeks at statutory rate (£151.97/week)

So OMP gives extra pay, but doesn‘t replace or change statutory maternity pay eligibility. Some basic rights apply to all.

Negotiating OMP With Your Employer

If your employer doesn‘t currently offer OMP, try highlighting:

• The financial impact of statutory pay – talk specifics
• Your loyalty/commitment if supported through maternity leave
• Competitor OMP offerings to remain competitive
• Company culture benefits around diversity and inclusion
• Phased returns or flexible work options that support business needs

Come prepared with evidence – data, examples, cost proposals. And focus on win-win solutions, not demands. With planning and patience, negotiations often bear fruit!

Key Takeaways on Occupational Maternity Pay

• OMP offers extra pay during maternity leave to supplement statutory pay
• Typically provides full salary for 6-12 months then statutory rate only
• Uptake has risen rapidly, with 63% of employers now offering OMP
• Driven by benefits around recruitment, retention and company culture
• Negotiating OMP is possible even if not currently offered
• Understand OMP doesn‘t replace statutory maternity pay rights

I hope this guide has helped explain occupational maternity pay and empowered you to negotiate the best maternity package. Supporting working parents is a win for employers and families alike!